MISTAKES caused by rushing to meet the end of month self-assessment deadline could have serious consequences, according to North West tax experts.

Taxpayers are being urged to be ultra cautious following the introduction on January 1 of a new criminal offence of evading income tax, which carries a maximum sentence of seven years imprisonment.

Chartered accountants in the North West say the Inland Revenue is taking a much tougher line on carelessness and non-compliance and the new powers will intensify the fear of prosecution.

Michael Barton, president of the North West Society of Chartered Accountants, said cases of tax evasion could now be heard in magistrates courts, rather than higher courts, making prosecutions easier and cheaper.

"Taxpayers and their advisers need to be absolutely certain that what looked acceptable when they completed the return will also look acceptable in court," he said.

"Previously prosecutions for tax evasion were brought when very large sums were involved or when individuals were thought to be persistent offenders. Now there's the prospect that simply making a mistake could land people in court so they need to be much more careful."

Self assessment tax returns have to be submitted by the end of the month to avoid a £100 fixed penalty.